The result should be more than enough crude for the world's refiners, provided Saudi Arabian oil minister Ali al-Naimi keeps his pledge to pump more oil regardless of the acrimonious end to a meeting he described as the "worst ever".
But as a result, OPEC as a whole will draw down its "spare capacity" -- the cushion of excess supply that it can ramp up at short notice to meet supply gaps or demand spikes -- to the lowest since 2008, when oil surged to almost $150 a barrel.
That dwindling reserve, which stood at a hefty 5-6 million bpd at the start of 2011, threatens to leave the market at risk of further price spikes regardless of how well it is supplied. Without the return of Libya, spare capacity could fall to just 3 million bpd by year's end.
It may fall to as low as 2 million bpd by 2012, likely forcing traders to factor a greater "fear premium" into prices. At less than 2.5 percent of global demand, that cushion is razor-thin by historical standards.
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